Divertido Company produces single-colored T-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established:

Direct materials..................................... (2.4 lbs. @ $0.95) $2.28
Direct labor ..............................................(0.75 hr. @ $7.40) 5.55
Standard prime cost ............................................................$7.83

During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs:

Direct materials...................................... $ 63,000
Direct labor................. $163,385 (for 22,450 hrs.)

Required:
1. Prepare a journal entry for the purchase of raw materials.
2. Prepare a journal entry for the issuance of raw materials.
3. Prepare a journal entry for the addition of labor to Work in Process.
4. Prepare a journal entry for the closing of variances to Cost of Goods Sold.